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According to a Study of the Price Elasticities of Products

question 120

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According to a study of the price elasticities of products sold in supermarkets, the price elasticity of demand for toothpaste is estimated at -0.45.Which of the following could explain why the price elasticity of demand for toothpaste is so low?


Definitions:

Marginal Social Cost

The additional cost imposed on society as a whole by producing one more unit of a good or service, including both private costs and externalities.

Public Park

A publicly owned area of land, often green and open, designated for recreational use by the community.

Socially Optimum

The optimal distribution of resources and production from a societal perspective, where social welfare is maximized.

Social Perspective

The viewpoint focusing on how societal contexts influence individuals and groups, including norms, values, and social institutions.

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